Presentation is loading. Please wait.

Presentation is loading. Please wait.

UNIFI (ISO 20022) The success of ISO –

Similar presentations


Presentation on theme: "UNIFI (ISO 20022) The success of ISO –"— Presentation transcript:

1 UNIFI (ISO 20022) The success of ISO 20022 –
UNIversal Financial Industry message scheme UNIFI (ISO 20022) UNIFI_(ISO_20022)_SV_v11

2 UNIFI (ISO 20022) The ISO recipe for all financial messages
ISO UNIversal Financial Industry message scheme, the recipe: syntax neutral business modelling methodology syntax specific design rules industry led development/registration process financial repository on reverse engineering approach to ease coexistence UNIFI is not a suite of message standards but a recipe proposed by ISO to develop message standards for all domains of the financial industry. The recipe contains the ingredients shown. The most innovative characteristic of UNIFI is its modelling methodology which decouples the business standard from the physical message formats. The models evolve with the business, while the formats evolve with the technology to benefit from the latest innovations with regard to automation, ease of implementation, openness and cheapness of products, etc. This UNIFI recipe offers a better, cheaper and faster way of developing and implementing message standards. The business modelling is done in the Unified Modelling Language (UML). The syntax specific design rules cover the conversion of UML to XML (eXtended Markup Language). The combination of the first and last ingredients (the business modelling methodology and the reverse engineering approach) makes the UNIFI recipe a unique development tool kit. It proposes a single target (convergence) while offering at the same time a tool to ease interoperability with other existing message sets (coexistence). UNIFI_(ISO_20022)_SV_v11

3 Why UNIFI (ISO 20022)? Supports convergence and co-existence
IFX ISO 15022 MDDL TWIST FIX FpML Message model IFX TWIST Message model MDDL FpML FIX When standards are developed independently of each other, ‘translating’ from one standard to another requires to map data directly from one application to another and vice-versa. This is costly, unscalable and difficult to implement and maintain. Each time you add a new standard to support, it increases the complexity and cost exponentially. Using a single message model as a master model reduces the translation effort since each standard only needs to translate to the master to ensure a link with any other standard. Such an approach of developing syntax-independent business models is the core of the UNIFI standard… Longer term, the physical UNIFI messages generated from the model would become the one and only standard we are looking for. While getting there, the message model helps co-existence. Long term we want one standard, but in the interim several standards need to co-exist… UNIFI_(ISO_20022)_SV_v11

4 Why UNIFI (ISO 20022)? Convergence in the cooperative space
Competitive Space Cooperative Space Competitive Space High Value Payments: RTGS, EURO1 and CHIPS Financial Institutions Financial Institutions FX and Money Markets: Rule Books, CLS Public Admini- strators Commercial Payments: Rule Books, Clearing Houses, Processors Public Admini- strators Bank A Bank B Cards: Rule Books, Card Schemes, Cards Processors Corporates Corporates Tradefacilitation: ICC Rule Books, e-invoicing SME’s SME’s Cash: NCB rules, Industry Standards Merchants The ISO standardisation effort takes place in the cooperative space. As such it allows all financial players to maintain their competitive edge. Merchants Securities: Rule Books, Exchanges, CCP’s CSD’s, Standardisation Consumers Consumers Certification & Networks: SWIFT Cooperative space for business rules Cooperative space for standards UNIFI_(ISO_20022)_SV_v11

5 UNIFI (ISO 20022) recipe - For whom? Potential users and developers
communities of users looking for interoperability and more cost-effective communications Message development organisations: FIX, FinXML, VRXML, RIXML, FpML, IFX, TWIST, SWIFT, RosettaNet, OAGi, ACORD, ISTH, XBRL, CIDX, EPAS, etc. Market Infrastructures (MIs): DTCC, FED, EBA, Target, CLS, Euroclear, Omgeo, etc. International or national standards setters: ACBI, ISITC, ISO TC68 WGs, UN/CEFACT TBG5, OMG, EPC, etc. To whom is the UNIFI recipe targeted? The UNIFI platform is available to all developers of message standards (they don’t need to be affiliated to ISO). And the UNIFI message standards are freely and publicly available to all communities of users. The goal is to attract all developers of financial message standards. They will continue to focus on their domain of expertise and keep their Intellectual Property Rights (IPR) on the UNIFI-compliant messages they develop while all together offering the community a range of messages in the same language, as if they were developed by a single body. The organisations ‘in yellow’ on the slide have already engaged in UNIFI message development. Market infrastructures (ACHs, RTGS, CSDs, etc.) are adopting and pushing developers to embrace the UNIFI standard for the benefit of their common customers. Industry initiatives and regulatory requirements, such as SEPA, Giovannini, MiFID, the European e-Invoicing initiative, which all look for open standards to support their harmonisation of business practices, are all recommending to adopt UNIFI… There are also catalysts for interoperability and convergence, such as SEPA, Giovannini, MiFID, e-Invoicing UNIFI_(ISO_20022)_SV_v11

6 UNIFI (ISO 20022) The registration bodies
Registration Management Group - RMG (Overall governance) 50 senior managers from 18 countries and 9 international standards organisations Standards Evaluation Groups – SEGs (User representatives) Payments (40 experts,13 countries, 5 organisations) Securities (59 experts, 16 countries, 7 organisations) Forex (25 experts, 10 countries, 3 organisations) Trade (26 experts, 13 countries, 2 organisations) Cards and related retail financial services (to be formed) Technical Support Group – TSG (ISO technical advisors) 23 experts from 9 countries and 4 international standards organisations Registration Authority – RA (Maintaining UNIFI repository) The industry is directly involved in the acceptance, review and evaluation of candidate UNIFI messages submitted by the submitting organisations. The Registration Management Group (RMG) is the highest registration body. It is made up of senior industry experts nominated by ISO countries and international organisations in liaison with ISO. All together, they represent all sectors of the financial industry. The RMG monitors the overall registration process. It approves the business justifications introduced by submitting organisations that want to develop new UNIFI messages. It also initiates the creation of the Standards Evaluation Groups (SEGs). The Standards Evaluation Groups (SEGs) are groups of industry experts nominated by ISO countries and liaison organisations, which each represents the future users of UNIFI messages in a particular financial domain. Their role is to ensure that the candidate UNIFI messages actually address the needs of the future users. The Technical Support Group (TSG) is composed of technical experts nominated by ISO countries and liaison organizations, who can advise the submitting organizations and the other ISO registration bodies on technical matters related to the use of the ISO recipe, eg, modelling guidelines, usage of XML, repository management, impact of innovations, etc. The Registration Authority (RA) is the guardian of the UNIFI financial repository. SWIFT has been nominated by ISO to provide the RA services. The RA supports the submitting organisations in their development effort, ensures compliance of the developed models and performs the transformation of message models into compliant XML schemas. The RA is also responsible for the maintenance of the UNIFI website ( which contains detailed information on the status of all UNIFI projects. The RMG and the first two SEGs were initiated in 2005 and the next two SEGs met for the first time in September 2006, while the last SEG is being formed. As you can see from the figures on the slide, UNIFI is quite successful in attracting the interest of the industry world wide. UNIFI_(ISO_20022)_SV_v11

7 UNIFI (ISO 20022) The registration process
M G m o n i t r s Submitter Financial industry group or standards body Business justification Business justification RMG Project approval & allocation to a SEG SEG Endorsement of scope and developers Candidate UNIFI messages Submitter & RA Development & provisional registration SEG Business validation UNIFI messages This is an illustration of the process for development and registration of new sets of messages. There is a more detailed description of it on The entry point of the registration process is the preparation of a ‘Business Justification’ by the organisation that wants to develop the messages (the ‘submitter’). The Business Justification must describe the high level scope of the messages to be developed and the reason why they are expected to benefit the industry. The Business Justification is reviewed by the RMG. The RMG will decide whether the proposed development fits into the UNIFI spectrum, does not duplicate the already existing messages and is indeed beneficial to the community. If the request is approved, the RMG decides which SEG(s) will be in charge of the evaluation of the messages, once developed. The approved Business Justification is then forwarded to the assigned SEG(s) which reviews and endorses the scope. As representatives of future users, the SEG is best place to confirm whether the proposed scope is indeed attractive for the market. The SEG also checks that the right industry bodies are involved in the development. The submitter develops UNIFI compliant business and message models. The RA assists the submitter as much as possible during this phase in order to ensure that the models are compliant and use the right components from the Data Dictionary. If need be, the RA will create additional dictionary items. All these new items appear as ‘provisionally registered’ in the Repository. When the development is completed, the RA generates the XML schemas and prepares a comprehensive documentation for the SEG. Based on this documentation, the SEG(s) evaluates the candidate UNIFI messages. The main goal of the SEG(s) is to get the buy-in of the future users from a business perspective. The submitter is participating to the evaluation to help the SEG understand the proposed solution and address any question that would be raised by the SEG members. When/if the SEG approves the messages, the RA changes the provisional registration status to an official registration status in the UNIFI Data Dictionary and publishes the new ‘UNIFI messages’ in the Business Process Catalogue on When messages are first piloted or implemented, first users are invited to comment on the ‘technical implementability’ of the messages and the accuracy of the documentation published on the website. Possible changes or corrections requested by first implementers will be evaluated by the SEG, the RA and the submitter and may lead to changes to the messages and/or documentation. All along, the RMG monitors the work and if need be, arbitrates any disputes. Once the Business Justification is approved by the RMG, and as long as the messages have not been approved by the SEG, the messages are called ‘candidate UNIFI messages’. Once they are approved by the SEG for publication, the messages are called ‘UNIFI messages’ or ‘UNIFI compliant messages’. Official registration and publication RA Repository Dictionary Catalogue Optional pilot testing or first implementers Submitter & users UNIFI_(ISO_20022)_SV_v11

8 The UNIFI recipe is used! (1/10) Payments
Direct Debits / Credit Transfers Exceptions & Investigations Creditor’s financial institution Debtor’s financial institution Cash Management Change/Verify Account Identification E-Mandates Creditor Payment Activation Request Exceptions & Investigations UNIFI Advice & Statement Change/Verify Account Identification Creditor Payment Activation Request Cash Management E-Mandates Credit Transfer Initiation Advice & Statement Exceptions & Investigations Creditor Payment Activation Request Direct Debit Initiation Candidate UNIFI (in development) This is an overview of the current ISO offering to support the Payments market. The picture shows the various flows of information exchanged by the parties to initiate, execute and report the execution of a payment. The yellow arrows are already covered by approved UNIFI messages, while the blue arrows are still candidate UNIFI messages. In September 2005, the Payments SEG approved the very first set of UNIFI messages covering the area of ‘customer to bank credit transfer initiation’, which included the so-called ‘core payment kernel’ developed by ISTH (IST Harmonisation Team - a MoU between SWIFT, TWIST, IFX and OAG). In June 2006, the SEG approved a new version of the payment initiation messages, including direct debits as well as the interbank direct debit and credit transfer messages. The interbank messages were developed by SWIFT and will be used in the new SEPA environment. In July 2006, the SEG approved a set of messages developed by SWIFT to cover exceptions and investigations in the payments area. In March 2007, the SEG approved 3 bank to customer advice and statement messages developed by ISTH with the help of ISITC. The UNIFI payments messages are being reviewed, based on comments from the user base, aiming at a new release of the messages in 2009. Four additional business justifications have been approved by the RMG and will complement the approved messages, as follows: a whole suite of candidate cash management messages are expected to be presented by SWIFT for approval in They will include ‘query/answer’ messages to retrieve information about cash accounts and transaction and interbank statement and advice messages. the French SWIFT Users Group will also develop a set of messages to inform payment initiators of a change in the account identification of their counterpart or verify the account of the beneficiary before instructing a payment. SWIFT will develop a set of e-mandates messages to enable creditors to initiate and maintain payment mandates agreed upon by debtors. ACBI will develop a set of messages to enable creditors to request debtors to initiate a credit transfer in their favour. SWIFT will develop messages to enable corporate clients to open a bank account with their bank and maintain related data. (not shown on the slide) Cash Management Debtor Creditor UNIFI_(ISO_20022)_SV_v11

9 The UNIFI recipe is used! (2/10) Payments message portfolio is growing!
29 UNIFI messages approved and published: Customer payment initiation Interbank payment clearing and settlement Payments exceptions & investigations Bank-to-customer cash management Candidate UNIFI messages under evaluation: none Candidate UNIFI messages approved for development: Cash management Change/verify account identification E-Mandates Creditor payment activation request Bank account management New development proposals: Payments message maintenance 2009 UNIFI_(ISO_20022)_SV_v11

10 The UNIFI recipe is used
The UNIFI recipe is used! (3/10) Cards and related retail financial services UNIFI messages approved and published: none Candidate UNIFI messages under evaluation: Candidate UNIFI messages approved for development: ATM interface for transaction processing and ATM management New development proposal: Card payments exchanges Two business justifications have been received in the business domain of cards. A new SEG “Cards and related retail financial services” is being created to evaluate candidate messages in this area. UNIFI_(ISO_20022)_SV_v11

11 The UNIFI recipe is used! (4/10) Securities - equities and fixed income
Buyer Seller Pre-trade / Trade (FIX/SWIFT) Trade / Post-Trade (Omgeo) Regulators Transaction Regulatory Reporting (SWIFT) Corporate Actions Proxy Voting (SWIFT) Corporate Actions (SWIFT) Pre- Settlement (SWIFT) Pre- Settlement (SWIFT) UNIFI Reconciliation TPV Statement (SWIFT/ISITC) Candidate UNIFI (in development) Reconciliation (SWIFT) ISO 15022 I/CSD On the traditional fixed income and equities markets, the situation is a bit different since the securities industry moved to ISO 15022, the precursor of ISO 20022, four years ago. ISO (illustrated in red/orange on the slide) covers a large part of the securities business from trade to settlement and reconciliation, and corporate actions. The securities industry is willing to recoup the investments made in ISO before moving up the next step towards ISO Therefore, ISO development was initially focusing on areas not (well) covered by ISO such as: the transaction regulatory reporting required to address MiFID (four messages developed by SWIFT) the proxy voting process (eight messages developed by SWIFT) the investment funds distribution (see next slide). However, under the pressure of the firms who have not invested in ISO and would prefer to invest directly in ISO 20022 the industry initiatives (Giovannini, MiFID) recommending ISO 20022 the other financial industry sectors which are moving to ISO (eg, payments/SEPA), SWIFT has proposed to develop ISO equivalent messages in the ‘core’ areas of settlement and reconciliation, corporate actions, and triparty collateral management which are covered by ISO To help migration and co-existence, SWIFT proposes to develop and maintain ISO messages strictly equivalent to the ISO messages. SWIFT will provide translation support and ensure that the maintenance of the two sets of standards is synchronized until the industry is ready to fully migrate to ISO Euroclear, Omgeo and ISITC have also started development of candidate UNIFI messages in a series of specific areas. NB: the slide doesn’t show the Securities Issuance project from Euroclear and the Triparty Collateral Management project from SWIFT. Settlement & Reconciliation (SWIFT) Settlement & Reconciliation (SWIFT) Custodian Issuers’ Agent Communication (Euroclear) Registration Communication (Euroclear) Clearing agent Corporate Actions (SWIFT) Market Claims (Euroclear) Issuers’ Agent Registrar UNIFI_(ISO_20022)_SV_v11

12 The UNIFI recipe is used! (5/10) Securities - investment funds (CIV)
PEP/ISA/Portfolio Transfers Old plan manager Fund accountant New plan manager Price Report Order & Confirmation & Status Transfer & Confirmation & Status Transfer agent Statements Institutional investor Account Management Fund Cash Forecast Report A full set of 67 ISO messages were developed by SWIFT in the area of Collective Investment Vehicle (CIV). 45 of them were approved in December A second release, including 22 additional messages, was approved in April 2008. SWIFT is now developing 2 candidate Fund Processing Passport Report messages and has introduced a new BJ for the development of specific messages for Alternative Funds (hedge funds). Request for Fund Report FPP report user, e.g. Fund distributor FPP Report Investment manager FPP report provider, e.g. Fund manager UNIFI Candidate UNIFI (in development) UNIFI_(ISO_20022)_SV_v11

13 The UNIFI recipe is used
The UNIFI recipe is used! (6/10) Securities message portfolio is growing! 79 UNIFI messages approved and published: Investment funds distribution Securities transaction regulatory reporting Proxy voting Candidate UNIFI messages under evaluation: Securities pre-trade/trade Issuers’ agents communication Candidate UNIFI messages approved for development: Total portfolio valuation statement Securities post-trade Securities registration and holder identification Securities market claims and automatic transformation Securities settlement and reconciliation Securities corporate actions Securities Issuance Fund processing passport report Triparty collateral management New development proposals: Alternative Funds Proxy Voting Maintenance 2009 UNIFI_(ISO_20022)_SV_v11

14 The UNIFI recipe is used! (7/10) Forex
Ordering party UNIFI MTs FpML CUG (Trade Notifications) FX order Interest rate swaps Trading party Foreign exchange and currency options Loans and deposits Trading party FX & Loan/Deposit Advice & Allocations NDF Opening and Valuation Notifications and Foreign Exchange Option Premium Notifications Settlement party custodian NDF and Foreign Exchange Option Notifications NDF and Foreign Exchange Option Notifications In March 2007, the FX SEG approved 15 Forex Notifications messages submitted by CLS. There are no additional candidate UNIFI messages in development in FX. The SWIFT MT and FpML messages shown on the slide are for information only. Central Settlement System UNIFI_(ISO_20022)_SV_v11

15 The UNIFI recipe is used! (8/10) FX message portfolio is growing!
15 UNIFI messages approved and published: Forex notifications Candidate UNIFI messages under evaluation: none Candidate UNIFI messages approved for development: New development proposals: UNIFI_(ISO_20022)_SV_v11

16 The UNIFI recipe is used! (9/10) Trade Services
e-Invoice Buyer’s bank Seller’s bank TSU messages TSU messages TSU Invoice Financing Request e-Invoice EBPP UNIFI Candidate UNIFI (in development) Buyer The Trade Services SEG approved 3 Invoice Financing Request messages submitted by ACBI in October 2007 and 50 Trade Services Management (TSU) messages submitted by SWIFT in April 2008. UN/CEFACT TBG5 is developing messages related to e-Invoice and possibly electronic bill presentment and payment. Seller UNIFI_(ISO_20022)_SV_v11

17 The UNIFI recipe is used! (10/10) Trade message portfolio is growing!
53 UNIFI messages approved and published: Invoice financing request Trade services management Candidate UNIFI messages under evaluation: none Candidate UNIFI messages approved for development: E-invoice New development proposals: UNIFI_(ISO_20022)_SV_v11

18 & Answers uestions www.iso20022.org iso20022ra@iso20022.org
We have reached the end of this UNIFI presentation and are ready to answer your questions. Remember, a lot of information is available on the UNIFI website ( which is updated on an ongoing basis, but questions and comments can also be sent to the RA: UNIFI_(ISO_20022)_SV_v11


Download ppt "UNIFI (ISO 20022) The success of ISO –"

Similar presentations


Ads by Google